DataPoint Engineering is considering the purchase of a new piece of equipment for $260,000. It has an eight-year midpoint of its asset depreciation range (ADR). It will require an additional initial investment of $160,000 in nondepreciable working capital. Forty thousand dollars of this investment will be recovered after the sixth year and will provide additional cash flow for that year. Income before depreciation and taxes for the next six are shown in he ollo ng table. Use Table 12-11. Table 12-12. Use Appendix B or an approximate answer but calculate your final answer using the formula and financia calculator methods. Year Amount 1 $191,000 2 164,000 134,000 119,000 97,000 87,000 The tax rate is 35 percent. The cost of capital must be computed based on the following Cost Debt Preferred stock Common equity (retained earnings) 580% 11.60 16.00 35% 60 a. Determine the annual depreciation schedule. (Do not round intermediate calculations. Round your depreciation base and annual depreciation answers to the nearest whole dollar. Round your percentage depreciation answers to 3 decimal places.) Annual Year Base Depreciation Depreciation S 260,000 260,000 260,000 260,000 260,000 260,000 0.200 S 0.320 0.192 0.115 0.115 0.058 52,000 83,200 49,920 29,900 29,900 15,080 260,000